I am a co-leasor on a car loan and the other person is filing a Chapter 13 bankruptcy. Toyota Financial is telling me I can keep the car and continue to pay, but it is going to show on my credit as being included in the bankruptcy. How will this effect my credit scores? And if I trade the car in or refinance will that help?
If you trade or re-fi before the other person closes out the loan in the CH 13, then no BK notation of any sort should appear on your credit report.
Well, I was unaware that the BK was happening. So now the Bk will be final on Sep. 8 Dont know If I can get the car traded in before then. Do you know how that will affect my credit score?
It won't be helpful. Make whatever arrangements you can to have that bit of business closed out before the witching date.
